Ownership Thinking
Business Advisory
Employee Bonus Schemes and Shareholding issues
There is a belief in the marketplace that if your key employees had a shareholding in your business, they will think and act like business owners because their interest in the outcomes are “aligned” to that of the business. We believe that this may be true in some cases, but our experience with our clients has taught us that this approach is fraught with dangers and the whole exercise needs to be thought through very very carefully, and all assumptions reviewed. A case in point – if the employee resigns or is terminated, does (s)he still continue to be a shareholder with an expectation of a dividend and access to financial information?
By all means, reward your key employees well but do it in a manner which guarantees you their emotional investment and fosters an ownership thinking paradigm. And this has to be thought through and documented properly and executed flawlessly. Maroo Advisory can assist you in the process.